Customs duty in scrap export

As per business dictionary “scrap” means “waste that either has no economic value or only the value of its basic material content recoverable through recycling”

The term “Scrap” has not been defined any where in the GST Laws. As such one can derive its meaning as per normal business or commerce parlance. In GST regime, in order to be taxable the waste and scrap don’t have to pass the test of “manufacture” or “mechanical process” or marketability.

While taxability of waste and scrap is no longer contentious, finding proper HSN code is definitely a tedious task. The highest rate for scraps material is 18%.

GST RATE CHART OF SCRAP MATERIALS

Note

e-waste means electrical and electronic equipment listed in Schedule I of the E-Waste (Management) Rules, 2016, published in the Gazette of India vide G.S.R. 338 (E) dated the 23rd March, 2016, including the components, consumables, parts and spares which make these products operational.

The HSN code for a large number of Scraps materials has till now not yet been notified. As a conservative approach , if some one does not find appropriate HSN code of a scrap item, he may cover the same under residual Entry 453 of Schedule III of Notification No. 1/2017-Central Tax (Rate) dated 28th June, 2017.

In my view there is not duty for export of Scrap

In my view there is not duty for export of Scrap